Fast Retailing posts strong growth in revenue and profit

Fast Retailing reported full-year consolidated revenue of 2.3011 trillion yen, up 7.9 percent, operating profit of 297.3 billion yen, 19.4 percent, and profit attributable to owners of the parent of 273.3 billion yen, up 60.9 percent.

Excluding the impact of the weaker yen, which inflated performance, the company said, operating profit increased by approximately 14 percent and profit attributable to owners of the parent increased by approximately 16 percent year-on-year.

The company plans to offer a year-end dividend of 340 yen per share. When added to the 280 yen interim dividend, that would generate a scheduled annual dividend of 620 yen for FY2022, an increase of 140 yen compared to the previous year.

Uniqlo Japan same-store sales drop, Uniqlo International posts strong growth

FY2022 same-store sales at Uniqlo Japan declined 3.3 percent.

The company added that first-half same-stores sales decline of 9 percent and 4.7 increase in second-half same-store sales driven by strong sales of Kando jackets and pants, shirts and other products that satisfied renewed going-out needs as well as strong sales of summer ranges.

The gross profit margin improved 2.5 points on controlled discount sales.

At Uniqlo International, revenue of 1.1187 trillion yen increased 20.3 percent and operating profit of 158.3 billion yen rose 42.4 percent.

The company’s Greater China region reported a significant contraction in profit due to Covid-related restrictions on movement. However, sales recovered and resulted in higher revenue and a large increase in profit in the fourth quarter from June to August 2022.

South Asia, Southeast Asia & Oceania region reported an increase in revenue of approximately 60 percent and an increase in profit with operating profit more than tripling.

The North America and Europe regions achieved a large increase in revenue, a move into the black, and an operating profit margin of approximately 10 percent.

GU full-year revenue and profit decline

Revenue of 246.0 billion yen at GU dropped 1.4 percent, while operating profit of 16.6 billion yen declined by 17.4 percent.

During the first half, revenue declined and profits fell sharply due to the label’s inability to introduce strong-selling items in a timely manner. In the second half, revenue rose and profit increased considerably on improved product lineups and stronger marketing, which resulted in higher sales of items.

Global Brands revenue of 123.1 billion yen rose 13.8 percent, while operating loss was 0.7 billion yen. Theory witnessed increase in revenue and profit due to a recovery in performance primarily in the United States and Japan. Comptoir des Cotonniers revenue increased year-on-year and operating loss shrank considerably as the company closed unprofitable stores and proceeded with structural reforms.

Fast Retailing expects 15.2 percent increase in FY23 revenue

For FY2023, the company expects consolidated revenue of 2.6500 trillion yen, up 15.2 percent and consolidated operating profit of 350 billion yen, up 17.7 percent.

The company estimates profit attributable to owners of the parent of 230 billion yen, down 15.9 percent compared to FY2022 when Fast Retailing recorded a 114.3 billion yen foreign exchange gain on foreign-currency denominated assets.

The company forecasts an annual dividend per share of 680 yen, split equally between interim and year-end dividends of 340 yen each.

Fast Retailing plans to open 310 stores across the group in FY2023, accelerating new store openings primarily at Uniqlo International.